Solid Economics at L’Osservatore Romano

Share this article:

Join the Discussion:

No Comments

Good news is not always so hard to find. Case in point: Free-market economics is making a comeback at the Vatican’s daily newspaper L’Osservatore Romano.

Previously known as a dry read, L’Osservatore Romano (which means The Roman Observer in English) now contains provocative interviews and real news stories from around the world. This is attributable to the paper’s new editor, Giovanni Maria Vian, who was appointed to the post by Pope Benedict last October (see here for the interesting background on the change by the Italian journalist Sandro Magister.)

Ettore Gotti Tedeschi, a well-known Italian economist and banker, has been given prominent space to comment on current economic developments. He is a strong defender of the link between Christian principles and free markets, having authored a 2004 book titled, Money and Paradise: The Global Economy and The Catholic World.

In a February 13 article titled “The capital we should value most is human,” he warns against the temptation to resolve economic problems by merely increasing public spending. As Italians know only too well, high public spending will at some point translate into higher taxes. He stresses that these, in turn, diminish human liberty and dignity.

He is also critical of the Italian welfare state which only distributes resources without enhancing individual responsibility and future opportunities. His solution to the current economic difficulties is to leave more space for the market to push Italian businesses to a higher level of competitiveness, which then helps to increase investments and create jobs.

Gotti Tedeschi’s latest front-page article deals with an equally important subject — the high price of oil and economic development. He directly confronts those who argue that we need to reduce economic growth in order to adapt to falling energy supplies.

In his view, this would signal an unwarranted pessimism and distrust in human creativity. Instead, future energy problems should be combated with more research in new technologies and through using existing technologies more efficiently. Getting human anthropology right and showing confidence in human inventiveness are crucial.

Gotti Tedeschi’s ability to combine economic issues with Christian thought greatly enriches L’Osservatore Romano and all supporters of the free market should be thankful for this turn to sanity. Three cheers for the Pope’s newspaper!